Who collapsed enron?
The accounting scandal that emerged within Enron could not have been what discouraged investors and collapsed the company. The stock market was declining in the period before the malpractice came to light, and most investors knew nothing about the shady dealing prior to or anytime during the stock market’s fall. And while the scandal unfolded, primarily from November to March, the market actually grew again. Even as the Enron drama developed, investor and consumer psychology improved and stock prices rose. So what really happened? From the socionomic point of view, it was the investors who precipitated the Enron scandal, not the other way round. Stock prices had been falling for a full 18 months prior to the event. Enron stock also retreated, undermining investor support. By the time the controversy came to light, the trend toward an increasingly negative mood was already over. In fact, by late September of last year, it was time for the market to make its largest move upward in over a
